Share Issue

• Share Issue

  • A company can issue more shares to raise money for the business.
• Advantages:

  Large amounts of equity can be raised.
• Advantages:

  Shareholders benefit from limited liability.
• Disadvantages:

  Administration costs involved in issuing shares can be expensive and paid for 'up front'.
• Disadvantages:

  Selling price of shares is subject to demand and the selling price can fall.